Yestar International Holdings Co Ltd reports 112% EBITDA growth and 3.5 pp EBITDA Margin growth from 10.9% to 14.4%
14/03/2016 • About Yestar International Holdings Co Ltd (
$2393) • By InTwits
Yestar International Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Yestar International Holdings Co Ltd is a fast growth stock: 2015 revenue growth was 60.3%, 5 year revenue CAGR was 36.2% at 2015 ROIC 25.4%
- Yestar International Holdings Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's in pair with industry average of 20.5%.
- CAPEX is quite volatile: 18.5 in 2015, 10.4 in 2014, 23.3 in 2013, 51.9 in 2012, 22.3 in 2011
- The company has highly profitable business model: ROIC is at 25.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yestar International Holdings Co Ltd ($2393) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 977 | 956 | 1,173 | 1,531 | 2,455 | 60.3% |
| Gross Profit | 163 | 167 | 209 | 263 | 517 | 96.4% |
| SG&A | 97 | 91 | 115 | 116 | 225 | 94.7% |
| EBITDA | 83 | 91 | 112 | 166 | 353 | 112.2% |
| Net Income | 47 | 57 | 65 | 101 | 163 | 61.3% |
Balance Sheet
|
|---|
| Cash | 142 | 160 | 283 | 195 | 506 | 159.8% |
| Short Term Debt | 92 | 86 | 197 | 166 | 248 | 49.1% |
| Long Term Debt | 0 | 20 | 0 | 5 | 173 | 3,733.3% |
Cash flow
|
|---|
| Capex | 22 | 52 | 23 | 10 | 19 | 77.5% |
Ratios
|
|---|
| Revenue growth | 86.8% | -2.2% | 22.8% | 30.5% | 60.3% | |
| EBITDA growth | 111.2% | 10.3% | 22.1% | 49.0% | 112.2% | |
| Gross Margin | 16.7% | 17.5% | 17.8% | 17.2% | 21.1% | 3.9% |
| EBITDA Margin | 8.5% | 9.6% | 9.5% | 10.9% | 14.4% | 3.5% |
| Net Income Margin | 4.8% | 5.9% | 5.5% | 6.6% | 6.6% | 0.0% |
| SG&A, % of revenue | 10.0% | 9.5% | 9.8% | 7.6% | 9.2% | 1.6% |
| CAPEX, % of revenue | 2.3% | 5.4% | 2.0% | 0.7% | 0.8% | 0.1% |
| ROIC | 29.4% | 28.8% | 24.1% | 26.2% | 25.4% | -0.8% |
| ROE | 35.1% | 37.9% | 27.5% | 31.1% | 26.6% | -4.5% |
| Net Debt/EBITDA | -0.6x | -0.6x | -0.8x | -0.1x | -0.2x | -0.1x |
Revenue and profitability
Yestar International Holdings Co Ltd's Revenue surged on 60.3% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.1 pp from 28.8% to 22.7% in 2015.
Gross Margin increased on 3.9 pp from 17.2% to 21.1% in 2015. SG&A as a % of Revenue increased slightly on 1.6 pp from 7.6% to 9.2% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.76%. The company's CAPEX/Revenue decreased on 4.7 pp from 5.4% in 2012 to 0.76% in 2015. Average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at high and attractive ROIC (25.39%) and ROE (26.61%). ROIC decreased slightly on 0.82 pp from 26.2% to 25.4% in 2015. ROE decreased on 4.5 pp from 31.1% to 26.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.2x and Debt / EBITDA is 1.2x. Net Debt / EBITDA decreased on 0.1x from -0.1x to -0.2x in 2015. Debt surged on 146% in 2015 while cash jumped on 160% in 2015.
Appendix 1: Peers in Distribution/Wholesale
Below you can find Yestar International Holdings Co Ltd benchmarking vs. other companies in Distribution/Wholesale industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Forefront Group Ltd ($885) | | | 504.6% | 3,871.0% | |
| China LNG Group Ltd ($931) | -84.5% | 694.8% | 13.6% | 1,341.3% | |
| Sheng Yuan Holdings Ltd ($851) | | -86.1% | 756.9% | 567.2% | -2.1% |
| China Infrastructure Investment Ltd ($600) | 346.9% | 412.1% | -50.9% | 557.9% | |
| China-Hongkong Photo Products Holdings Ltd ($1123) | | 24.9% | 9.0% | 81.2% | 12.2% |
| |
|---|
| Median (37 companies) | 14.6% | 3.1% | 0.0% | 0.8% | 0.0% |
|---|
| Yestar International Holdings Co Ltd ($2393) | | -2.2% | 22.8% | 30.5% | 60.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | 67.0% | 75.3% | 71.7% | 74.8% | 73.8% |
| Forefront Group Ltd ($885) | | | | 69.8% | |
| YGM Trading Ltd ($375) | 67.1% | 66.5% | 67.4% | 64.0% | 62.5% |
| Goldlion Holdings Ltd ($533) | 57.3% | 56.4% | 54.1% | 55.7% | |
| Sincere Watch Hong Kong Ltd ($444) | 34.2% | 35.6% | 39.7% | 38.8% | 38.3% |
| |
|---|
| Median (33 companies) | 15.5% | 17.3% | 17.4% | 19.3% | 24.8% |
|---|
| Yestar International Holdings Co Ltd ($2393) | 16.7% | 17.5% | 17.8% | 17.2% | 21.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | -134.6% | 163.7% | 613.4% | 285.7% | 364.1% |
| China LNG Group Ltd ($931) | 195.2% | 95.1% | 76.4% | 97.9% | |
| Forefront Group Ltd ($885) | | -2,113.8% | -803.1% | 57.7% | |
| China Infrastructure Investment Ltd ($600) | -1,171.2% | -274.9% | 120.0% | 52.0% | |
| GA Holdings Ltd ($8126) | -4.5% | 8.0% | 19.7% | 22.9% | |
| |
|---|
| Median (37 companies) | 2.2% | 2.1% | 1.9% | 4.5% | 1.8% |
|---|
| Yestar International Holdings Co Ltd ($2393) | 8.5% | 9.6% | 9.5% | 10.9% | 14.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| C Y Foundation Group Ltd ($1182) | 9.8% | 2.5% | 5.2% | 82.2% | 9.3% |
| Inspur International Ltd ($596) | 0.9% | 8.4% | 12.2% | 33.6% | |
| SIS International Holdings ($529) | 0.2% | 13.4% | 31.8% | 14.8% | |
| HKC International Holdings Ltd ($248) | 0.9% | 5.5% | 0.8% | 11.4% | 0.5% |
| Tan Chong International Ltd ($693) | 7.6% | 6.0% | 7.6% | 7.0% | |
| |
|---|
| Median (36 companies) | 1.3% | 1.3% | 1.7% | 1.7% | 1.6% |
|---|
| Yestar International Holdings Co Ltd ($2393) | 2.3% | 5.4% | 2.0% | 0.7% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China LNG Group Ltd ($931) | 2.2% | 8.4% | 7.4% | 87.0% | |
| Powerwell Pacific Holdings Ltd ($8265) | 27.8% | 6.4% | 6.4% | 23.6% | |
| Forefront Group Ltd ($885) | -37.7% | -4.9% | -11.0% | 19.5% | |
| Sincere Watch Hong Kong Ltd ($444) | 46.4% | 51.7% | 27.7% | 14.6% | 5.5% |
| GA Holdings Ltd ($8126) | -6.1% | 3.3% | 12.0% | 13.5% | |
| |
|---|
| Median (38 companies) | 2.2% | 2.1% | 0.9% | 3.1% | 0.9% |
|---|
| Yestar International Holdings Co Ltd ($2393) | 29.4% | 28.8% | 24.1% | 26.2% | 25.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | 15.4x |
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | 15.7x |
| Huiyin Household Appliances Holdings Co Ltd ($1280) | 10.1x | | | 10.9x | |
| Pacific Andes International Holdings Ltd ($1174) | 4.9x | 5.1x | 9.1x | 7.8x | |
| SIS International Holdings ($529) | -62.1x | -1.8x | 7.0x | 7.2x | |
| |
|---|
| Median (26 companies) | -0.2x | -0.1x | -0.5x | 0.3x | -0.1x |
|---|
| Yestar International Holdings Co Ltd ($2393) | -0.6x | -0.6x | -0.8x | -0.1x | -0.2x |
